PIAC provided a response to the Consultation on updates to the ISP Methodology.
We support the proposed changes aimed at increasing the accuracy of the model, and are particularly pleased that the changes are largely geared towards managing the risks of a transmission over- rather than under-build.
We support the introduction of a value of carbon reductions in the cost benefit analysis stage of the ISP. This will allow the regulator to go beyond simply setting a GHG emission ceiling, and co-optimise the aim of emission reduction alongside the other national energy objectives.
We have two further asks for the Update. First, the ISP must play a greater role in orchestration – the co-optimisation of the transformation in energy consumption alongside the optimisation of energy supply. Second, we support the introduction of ‘consumer social licence’ to sit alongside ‘community social licence’, and advocate for AEMO to play a more proactive role in building consumer social licence.
